CalendarC CengageNOWv2 | Online teaching and learning resource from Cengage LearningCash Dividends on Common StockWildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Wildebeest had 320,000 issued and outstanding shares. On July2, Wildebeest repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Wildebeest declared a cash dividend of $1.10 per share. Thdividends were paid on April 1 and October 1.Required:1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank.Mar. 1Sept. 12. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank.Аpr. 1Oct. 13. Conceptual Connection: Explain why the amounts of the two dividends are different.The number of shares outstandingdue to the purchase of treasury stock on July 2.(PreviousNextChorkMLMindamore Check.MWorkuses.cemaiping.

Shares purchased as Treasury stock is not outstanding. So , no Dividend is declared on shares…

Answered: Cash Dividends on Common Stock

Business

Accounting

Cash Dividends on Common Stock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Calendar
C CengageNOWv2 | Online teaching and learning resource from Cengage Learning
Cash Dividends on Common Stock
Wildebeest Corp. is authorized to issue 2,000,000 shares of common stock. At the beginning of the year, Wildebeest had 320,000 issued and outstanding shares. On July
2, Wildebeest repurchased 4,610 shares of its common stock at $28 per share. On March 1 and September 1, Wildebeest declared a cash dividend of $1.10 per share. Th
dividends were paid on April 1 and October 1.
Required:
1. Prepare the journal entries to record the declaration of the two cash dividends. If an amount box does not require an entry, leave it blank.
Mar. 1
Sept. 1
2. Prepare the journal entries to record the payment of the two dividends. If an amount box does not require an entry, leave it blank.
Аpr. 1
Oct. 1
3. Conceptual Connection: Explain why the amounts of the two dividends are different.
The number of shares outstanding
due to the purchase of treasury stock on July 2.
(Previous
Next
ChorkMLMind
amore Check.MWorkuses.cemaiping.

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